5 Revealing Analyst Questions From Yelp's Q2 Earnings Call

Yelp’s second quarter saw revenue and profitability exceed Wall Street expectations, but the market reaction was sharply negative. Management attributed the results to ongoing strength in its services segment and disciplined cost controls, while also noting persistent challenges in the restaurants and retail categories. CEO Jeremy Stoppelman highlighted that services revenue growth, up 8% year-over-year, was the main driver, while the restaurants, retail, and other (RR&O) segment declined by 5% amid macroeconomic pressures. CFO David Schwarzbach discussed that ad budgets increased only modestly, and the typical seasonal lift did not materialize, citing “heightened macroeconomic and policy uncertainties” as material headwinds.

Is now the time to buy YELP? Find out in our full research report (it’s free).

While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.

Our Top 5 Analyst Questions From Yelp’s Q2 Earnings Call

• Sergio Roberto Segura (KeyBanc Capital Markets): Asked management to explain the deceleration in services revenue growth. CEO Jeremy Stoppelman attributed it to macroeconomic and policy volatility, noting increased advertiser caution and only modest budget increases through the quarter.
• Sergio Roberto Segura (KeyBanc Capital Markets): Inquired about the opportunity for AI search API and data licensing. Stoppelman described significant recent momentum, with API usage up 10x in two months and a $10 million run-rate in licensing revenue, but emphasized the opportunity is still in its early stages.
• Zachary J. Witaszek (Baird): Questioned the ongoing competitive headwinds in the restaurant segment. COO Jed Nachman responded that macroeconomic factors—especially inflation and consumer sentiment—remain the primary challenge, with competition from delivery providers less significant.
• Zachary J. Witaszek (Baird): Sought clarification on how Yelp Assistant might support activity in restaurant and other high-frequency categories. Stoppelman highlighted that cross-category expansion of Yelp Assistant is underway and could drive higher engagement as it becomes a new interface for discovering local businesses.
• No further analyst questions on the call.

Catalysts in Upcoming Quarters

Looking forward, the StockStory team will be watching (1) the pace and breadth of Yelp Assistant’s rollout across categories and user types, (2) whether macroeconomic headwinds in restaurants and retail begin to ease and translate into improved advertiser demand, and (3) continued growth in AI data licensing partnerships and API usage. Progress in expanding adoption of new AI-powered features will be a key marker for sustained revenue growth.

Yelp currently trades at $32.01, down from $34.31 just before the earnings. Is the company at an inflection point that warrants a buy or sell? See for yourself in our full research report (it’s free).

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